Abdulaziz Al Abdulkarim
VP Procurement & Supply Chain Management
Hydrocarbons to fuel the future: Choices & Challenges
In-Kingdom Total Value Add (IKTVA) Program Our Value Creating Contribution to Saudi Vision 2030
It has never been a more exciting time to be seeking business and opportunity in the Kingdom of Saudi Arabia. The Saudi Arabia Vision 2030 – announced by the Prince Mohammed bin Salman, with the full blessing of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud – sets out the framework for a thriving, diversified, highly-skilled, economy.
It aims to:
- develop a strong, high-skilled Saudi workforce, unlocking the potential of our youth and female populations and tailoring training and higher education to meet demands of the private sector.
- create a bigger role for Saudi’s small- and medium-sized enterprise; increasing the SME contribution to GDP from 20% to 35%.
- develop robust manufacturing and industrial sectors, supporting mining, energy and renewable energy as well as oil.
- create a more business-friendly regulatory environment, while also tapping into greater strategic trade relations with Asia, North America, Europe and Africa through logistics and industrialization driven export capacity.
Globally, there is growing recognition, especially in emerging markets, that suppliers and investors must build long-term partnerships with companies and countries where they do business. They must invest in long-term prosperity of the host nations which means investing in local talent and increasing local capabilities to create long-term employments opportunities.
Thus, at Saudi Aramco, in December 2015, we launched our In Kingdom Total Value Add (IKTVA) program, as our value creating contribution to Saudi Arabia Vision 2030, to drive us towards three key objectives.
- The first is to double the percentage of locally produced energy-related goods and services we procure, from 35% to 70% of our total spend by 2021.
- The second is for the thriving energy sector to deliver hundreds and thousands of high-skilled jobs and long-term careers for Saudi citizens across growth industries
- And third, is to have our local energy goods and services industry exporting 30% of its output over the same timeframe.
IKTVA is a Saudi Aramco strategic imperative and it represents a new standard of doing business with us, and for doing business in the Kingdom.
IKTVA is a newly defined level playing field, which is fair, transparent, and systematic.
We understand deeply the ecosystem that is required to enable connections, collaboration and meaningful opportunity. In our presentation, we will share actions taken and planned to boost this ecosystem. We will also discuss success stories and opportunities for those ready to participate in IKTVA and Vision 2030.